SODIC says rights issue 99.19% subscribed, seeks no more - Mubasher | Egypt

http://english.mubasher.info/EGX/news/2621753/SODIC-says-rights-issue-99-19-subscribed-seeks-no-more#.VGHr4oe6DeI

Real Estate Analysts, still criticize the company for focusing on high end products with relatively high prices which drives the market higher for no fundamental reason, such units are sold to rich customers and client, who are the same clients, in most of their projects, who eventually will get saturated, and who are not using the units for residential purposes but rather for investment, which hinder new weds and families from accessing reasonably priced units.
Sodic should invest more, like Orascom for example in low to medium income units, and limit its profit margins to reasonable limits in order not to over supply the high end market, and make low to medium priced units accessible to low and medium income family, given the enormous profits they made in the market, so they should start to act more socially responsible and not just think of making extreme profits with will lead to a market bubble such as in 2008, which will eventually collapse the high end real estate markets, that will result in loss to Sodic clients who already bought for very high prices.
Generally, real estate developers in Egypt are also criticized for not introducing REITS and Securitization, though the legislature and legal regime so permits, which will enhance the work of the real estate mortgage, which eventually make residential units available to low and medium income classes. However, with such high interest rates, imposed by banks, which analysts recommends it should go way down, as it is among the highest in the world, real estate developers are preferring to do it themselves and sell the units on maps, get the money from the buyers and use it for building, and by the time the construction work is done, the real estate developer has already collected its cost and made its enormous profit. Accordingly banks and real state developers should both act more responsibly and think more about the long term sustainability of the system rather than on the very short term hit and run strategy, which destabilize the market and result in a historical rally of real estate prices for absolutely no fundamental reason.